The cabinet meeting was attended by ministers from the BJP, All Jharkhand Students Union and Janata Dal-United. JMM ministers did not attend the meeting, said the official in the chief minister's office.
The cabinet's decision comes ahead of JMM presenting the letter of withdrawal of support to the governor.
The withdrawal of support Monday has reduced the state government to a minority in the 82-member assembly.
Relations between JMM and BJP have been strained ever since Chief Minister Arjun Munda denied there was an agreement between the two parties on sharing the chief minister's post.